What is the ruling on the pledgee deriving benefit from pledged items that require no immediate expense, such as a house or chattel?
General Chapter
Al-Mughni
Book of Pledges (Collateral)
Primary text
The pledgee is absolutely prohibited from benefiting from pledged property such as a house or chattel that requires no maintenance or expense without the pledgor's explicit permission. There is no known dispute on this matter, as the pledge remains the property of the pledgor, and thus its increase and usufruct belong to the pledgor and cannot be taken by others without consent.
Supporting text
If the pledgor permits the pledgee to benefit without compensation, and the underlying debt is a loan (Qard), this is impermissible because it results in a loan generating benefit, which is forbidden. Ahmad considered a house pledged for a loan wherein the pledgee benefits to be pure usury (Riba). However, if the pledge secures the price of a sale, rent for a house, or any debt other than a loan, the pledgee's benefit with the pledgor's permission is permissible. This view is narrated from Al-Hasan and Ibn Sirin, and Ishaq held this opinion.